Mr. Robert Baldock reports

YUKON-NEVADA GOLD CORP. ANNOUNCES RESTRUCTURING OF KETZA RIVER ASSETS

Yukon-Nevada Gold Corp. has determined, in principle, to proceed with a restructuring of the company's assets which will result in the company's Ketza River, Yukon, property being transferred to a separate corporate entity, Newco, which will be a wholly owned British Columbia subsidiary of the company, and will own 100 per cent of the shares of Ketza River Holdings Ltd., the Yukon-domiciled company which holds the Ketza River assets.

It is anticipated that Newco will make a public distribution of approximately 25 per cent of its shares to pay for the preproduction costs of the Ketza River assets. Following such public distribution, the company will hold the remaining approximate 75 per cent of the issued shares of Newco. It is the intention that Newco will make application for a listing of its shares on a recognized stock exchange.

Following the spinout of Newco, the company will be able to focus on the further development and enhanced production of its Jerritt Canyon gold mine in Elko county, Nevada.

The proposed transaction remains subject to further review and approval by the company's board of directors. If such approval is given, completion of the transaction will be subject to approval of the applicable securities regulatory bodies. In the interim, the company is engaged with advisers to determine how best to proceed in terms of structure, timing and other important issues related to a transaction of this type.

Mr. Baldock stated, "The creation of Newco and the appointment of separate management, whilst maintaining shareholder control, will not only strengthen the group management team but will also allow the present company management to more fully focus on Jerritt Canyon and the significant program of development and growth planned at the Elko, Nevada, operational site."

We seek Safe Harbor.